Chinese Cargo Owners May Face Huge Bill After Baltimore Bridge Collision

Chinese cargo owners may face significant financial risks after the container ship Dali collided with a Baltimore bridge last week, as an insurance specialist from a shipping company told Caixin that the ship owner may declare “general average” due to the huge losses caused by the accident.

General average refers to a legal principle in maritime law under which all stakeholders — including shipowners, carriers and cargo owners — proportionately share the losses caused by a voluntary sacrifice of part of a ship or cargo to save the whole in an emergency.